07-18-2019, 03:53 AM | #1 |
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The English house buying farce
How the hell can the biggest purchase most people make in their lives be so useless!
How is it possible for the bottom of the chain to decide the day before we complete having exchanged contracts last week that they no longer want to buy the house?! Its not too bad for me as its my deceased parents house I am selling as executor and so I am at the top of the chain not needing to move. I really feel for the young couple who were buying mine, they have had their first child yesterday who now have to re-market theirs! What a ridiculous system! |
07-18-2019, 04:08 AM | #2 | |
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07-18-2019, 04:11 AM | #3 |
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Funnily enough if you buy a new house they ask for a deposit - non refundable....
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07-18-2019, 04:13 AM | #4 |
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In this respect the Scottish system of legally binding bids is helpful in avoiding this situation, albeit with the lottery of sealed bids if you want to secure most houses
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07-18-2019, 04:18 AM | #5 |
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We were due to complete on a property back end of 2017, only for the lower chain to pull out last minute.
It's frustrating at how long it takes for anything to progress, not to mention the costs involved before you even get to completion.
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07-18-2019, 05:17 AM | #6 |
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Yep, I don't think I've ever spoken to 1 person who is happy with the house buying process in this country, its an absolute joke. Once offer is accepted it should be legally binding. I'd also welcome the Scottish system.
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07-18-2019, 05:20 AM | #7 |
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If they've exchanged, they'll lose their deposit, so one assumes must be more to it than just not fancying the house any more?
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07-18-2019, 05:34 AM | #8 | |
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07-18-2019, 06:38 AM | #10 |
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07-18-2019, 07:54 AM | #11 |
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A crap system and it's been so for ever and everyone knows how bad it is.
But the delays and procrastination suit the lawyers that operate it,and parliament is full of lawyers... |
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07-18-2019, 09:35 AM | #13 | |
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I might be missing something here, but if they have exchanged then they are required to complete. At the very least, failure to complete means the loss of their deposit, but it might not be limited to that as they could be in the chair for all losses incurred by the vendor in that particular transaction, who themselves might lose their deposit etc, etc. This is normally an issue where agents try to get simultaneous exchange and completion with a chain of transactions, or one of the parties exchanged at risk..... Might be worth checking that all parties did in fact exchange at the original date as it might be that the people of the bottom did not in fact exchange. Hope it is sorted out. |
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07-18-2019, 10:03 AM | #14 |
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Going back a lot of years I remember a colleague at work relating a similar story; quite a long chain that started with a relatively cheap first-time buyer home and ended with something pretty expensive. At the 11th hour the chain broke right at the bottom so the person at the top sorted it by buying the first-time buyer home so everyone else in the chain could complete; the value of that house was loose change to him and even if he made a small loss selling it he felt it was worth it to ensure his own sale went through!
However, clearly not all house purchase chains have a person who can afford to do that and I agree the OP's position highlights shortcomings in the English system - our friends North of the Border seem to do it much better... |
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07-18-2019, 10:10 AM | #15 | |
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07-18-2019, 10:25 AM | #16 |
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There's 3 in the chain. Guy renting about to buy first house with dads money.
Matt and Alice who have just had a baby and me selling a vacant house taking clear profit. When we heard they had taken a tenancy instead of buying the first house in the chain I offered to buy them out of that. 3 month lease plus another 3 months to make it sweeter to help it happen. Nope not interested in that. |
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07-18-2019, 11:43 AM | #17 |
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Know exactly where you are coming from. Has happened to us twice so far this year. Found out ideal house. It was a new build go to choose bathroom, kitchen and tiles. Plus adjust socket layout as was only a base at the time. Got our house on the market. Given 1 month to sell by developers sold in 3 weeks. Buyer pulled out few days after as things were starting to get moving. House straight back onto market and 2 month extension. Sold house 2 days before extension run out. Couple wanted it to rent. Said we could rent back as new build won't be ready till July. 2 days before exchange they pulled out So lost new build that was going to be ideal dream home. Plus ended up with 2k bill from solicitors
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07-18-2019, 03:47 PM | #18 |
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First time buyer with mortgage approved and waiting for a 1 bed flat Executor sale (no chain) took 14 weeks!!!! Albeit over Christmas period.
When I sold that to buy our current place, we were in a chain of 4 and it took only 6 weeks over summer. I feel for anyone moving! It can be stressful as fuck! |
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07-19-2019, 06:32 AM | #19 |
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I'm not sure it is such a bad system
You could make an offer on a house that gets accepted then you can organise a survey, if that survey reveals something that you're not happy with then you can pull out There has to be a point at which contracts become binding, ie exchange, and until then then yes, the chain can fall apart Otherwise it would have to be a system where there would have to be some many things that the contract would be subject to, surveys just being one, that people would still find a way to pull out if they change their mind. Totally shit for anyone it happens to, the last house I sold (in 2001) was bought by a complete pair of numpties who messed me around no end. |
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07-19-2019, 01:36 PM | #20 |
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the Scottish system is better, but 'bids' are not legally binding, and the buyer does not have to accept the highest bid.
but honour does count for a lot. but the binding element comes in much earlier in the process - once 'missives' are concluded - perhaps a month or so after the exchange of offers - the move in date can be agreed as several months after the conclusion of missives tho - but both parties are committed to the purchase / sale as soon as missives are concluded. so in balance, the Scottish system is much fairer on both parties - |
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07-19-2019, 06:01 PM | #21 |
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I think the Australian system is good. You pay a non refundable deposit and legally the whole process has to be over and done with within aboit a month. Stops all the solicitors and banks fucking about as well as the buyers and sellers
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07-20-2019, 06:59 AM | #22 |
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I'm in the middle of it at the moment. Hate knowing that despite all the man hours from my accountant / tax advisor / IFA (joys of being self employed) that at any stage someone could pull out and ruin the whole thing.
I'm also dealing with a vendor who has priced up everything as a paid-for item. He can shove the whole lot, would rather buy new than pay him 95% of the price he paid for some curtains 10 years ago. |
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